News certainly not great for the manuka honey industry as a whole.
"All of this comes at a time of a rather poor season, due to weather events combined with lower honey prices and tougher standards around the definition of manuka honey — leading to financial stress for some businesses and a lowering of business confidence in parts of the industry."
Last year's (2018) summer hot weather was blamed for the poor manuka honey harvest.
Combined that with the explosion of beehives all attempting to extract what little honey is being produced by the manuka plants, things must be looking rather grim for Comvita.
Word from the international markets isnt that great either. Being undercut by 20-30% by 'Australian Manuka'. PE still way out of wack IMHO
Agree 100% with what you and Balance have said. Buying CVT at the current price looks like a recipe for a very sour taste left in one's mouth down the track.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Nothing 'magic' about the brand when you can buy it in Pak N Save, thrown in a bin! Or that it is the best channel that you have for your product!
And you also know that P&S won't lose out of it!
Talked to a beekeeper just yesterday who manages over a few tonnes of manuka honey from the North and some key points:
1. His company has had a good season compared to the last 2 seasons.
2. The testing regime for manuka honey is a 'mess'.
3. There is plenty of low quality manuka honey around still.
4. Comvita is still the industry standard as far as the China market is concerned but other players are making inroads and this should accelerate when the manuka honey testing regime is properly implemented.
5. 2 & 3 have resulted in a flood of blended manuka honey in the market.
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Originally Posted by kiora
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